Hospitals will save approximately $660 million a year thanks to a new government rule that removes unnecessary, obsolete or burdensome regulations, according to the Centers for Medicare & Medicaid Services (CMS).

The reforms, announced yesterday in a final rule, eliminates requirements that hinder hospitals or other healthcare organizations from providing high-quality patient care, the agency said in an announcement. CMS estimates organizations will save roughly $3.2 billion over the next five years as a result of the new rule. In addition, it projects that combined with President Barack Obama's "regulatory look-back" executive order, the two rules will save healthcare providers $8 million over the course of five years.

"By eliminating stumbling blocks and red tape we can assure that the healthcare that reaches patients is more timely, that it's the right treatment for the right patient, and greater efficiency improves patient care across the board," said CMS Administrator Marilyn Tavenner in the announcement.